MARKETING STRATEGY OF MARUTI SUZUKI

(PVT.) LIMITED

BACHELOR OF BUSINESS ADMINISTRATION

Session 2021 – 24

BY

NITISH NAGAR

21GSOB1010378

Under the guidance of

Dr. MEGHNA SINGH

professor
Galgotias university

Galgotias University
1 |P a ge
 Research Project Report
“MARKETING STRATEGY OF MARUTI SUZUKI ’’

BACHELORS OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF

DR. MEGHNA SINGH

SUBMITTED BY

NITISH NAGAR
21GSOB1010378
BBA 2021-2024

SCHOOL OF BUSINESS

APRIL , 2024

GALGOTIAS UNIVERSITY

ii
 CERTIFICATE

This is to certify that the project report “Marketing Strategy Of Maruti Suzuki”
has been prepared by NITISH NAGAR under my supervision and guidance. The
research report is submitted towards the partial fulfillment of 3 years, full time
Bachelors of Business Administration.

Name and signature of faculty : DR. MEGHNA SINGH

Date:

iii
iv
 DECLARATION

I NITISH NAGAR Roll No. 21GSOB1010378 student of School of Business,

Galgotias University, Greater Noida, hereby declare that the research report on “

Marketing Strategy Of Maruti Suzuki ” is an original and authenticated work

done by me.

I further declare that it has not been submitted elsewhere by any other person in

any of the institute for the award of any degree or diploma.

NITISH NAGAR

BBA

21GSOB1010378

v
 PREFACE

Bachelor of Business Administration (B.B.A) programme is one of the most reputed professional
courses in the field of management. This course includes both theory and its applications as per
contents of its curriculum. project report is an integral part of Bachelor of Business Administration
programmed of GALGOTIAS UNIVERSITY of school of business studies. It gives exposure to our
practical knowledge and also to get interact with the various aspects of present market conditions.
Each student is required to undergo practical research, after the completion of second semester
examination.

The project programmers are designed to give the managers the future of the corporate happenings
and work culture. The real life situation is really different from the stimulated exercise enacted in an
artificial environment inside. The Research project report presented here is a result of my hard work.
The Project Study on ―MARKETING STRATEGY OF MARUTI SUZUKINEXA PVT LTDǁ has
been conducted to observe the preferences of consumers. This system of education is highly
appreciated as it provides the students with an opportunity to acquaint them with the outside world.
The practical work helps the students to view the real business world closely, which in turn widely
influences their conception.

vi
 TABLE OF CONTENTS

Chapter Particular(s)
Page.no.
1 EXECUTIVE SUMMARY 02
1 Introduction 03
2 Company profile 06
3 Organizational structure 14
5 Product 15
8 Challenges or problem encountered 16
9 Marketing strategy of Maruti Suzuki 17
10 Research problem 33
11 Research methodology 34
12 Questionnaire 36
13 37
Research objective

14 Data tabulation, interpretation, analysis, 38

15 finding 62
Bibliography 66

16 Internship Synopsis/Executive Summary 66

17 Feedback 76

1
 EXECUTIVE SUMMARY

The project was carried out in the market of Delhi (NCR). Main objective of the project is to find out
the marketing activities taken by Maruti Suzuki Nexa and the effect of those activities in marketing
behavior. While doing this project attempts were made to collect maximum information about
marketing activities in automobile sector.
Different marketing strategy used by Indian auto car maker to differentiate own car from competitors
in same segment are been explained. Here, using the case of Maruti Suzuki Through primary and
secondary data, marketing strategy of the company, with the competitor is explained. That shows
how company is been successful in Indian Markets over the years.

Here through questioner, tried to find out whether the company‘s perception about their products and
believes of customers of Maruti Suzuki Nexa cars are matched or not. This is one type of reality
check.

Gap Analysis is done after gathering all data and carried out for data analysis. Checks the gap
between Company‘s perspective and consumers‘ perspective. Different aspects of Maruti cars from
quality, reliability, luxury to price all have been evaluated from company as well as customers‘ point
of view.

Mainly marketing strategy of maruti Suzuki is focused by evaluating current postion of Maruti by the
help of student and customer perception used by the company have been evaluated in this project.

2
 INTRODUCTION

―A market is never saturated with a good product, but it is very quickly saturated with a bad one.
- Henry Fordǁ

INDIAN AUTOMOBILE INDUSTRY

The automotive industry is one of the largest industries worldwide and in India as well. The
automotive sector is a vital sector for any developed economy. It drives upstream industries like
steel, iron, aluminum, rubber, plastics, glass and electronics, and downstream industries like
advertising and marketing, transport and insurance.

The automotive industry can be divided into five sectors:-

1) Passenger Cars
2) Multi- Utility Vehicles (MUVs)
3) Two- and Three- Vehicles
4) Commercial Vehicles - Light Commercial Vehicles (LCVs) / Medium and Heavy
Commercial Vehicles (MHCVs)
5) Tractors
6) We will be looking at the Passenger car industry in India.

Despite a head start, the passenger car industry in India has not quite matched up to the performance
of its counterparts in other parts of the world. The primary reason has been the all-pervasive
regulatory atmosphere prevailing till the opening up of the industry in the mid-1990s. The various
layers of legislative Acts sheltered the industry from external competition for a long time. Moreover,
the industry was considered low-priority as cars were thought of as ‗unaffordable luxury‘.

3
The following table presents a comparative view of the extent of motorization in India vis-
à-vis certain other countries in the world

Country Passenger Cars in Use Two-Wheelers in Use

per Thousand Persons per Thousand Persons
Developed Countries
U.S.A 478 14
United Kingdom 373 12
Japan 395 115
Germany 508 36
Emerging Economies
China 3 8
Indonesia 14 62
Philippines 10 14
South Korea 167 59
India 5 27

4
PORTER FIVE FORCES MODEL IN THE INDIAN AUTOMOBILE
INDUSTRY

Threat from New Players: Increasing Market Strength

• Most of the major global players are present in the of Suppliers: Low
Indian Market; a few more are expected to enter.
• Financial strength assumes importance as high • A large number of
investments are required for building capacity. automotive component
• Access to distribution network is important. suppliers are present
Although important for all segments, having a in the Indian
distribution network in rural areas is vital for two- automotive industry.
wheeler makers. • Automotiveplayers are
• Lower tariffs in the post-World Trade Organization rationalizing their
era may expose Indian companies to threat of vendor base to achieve
imports (however, the threat may be mitigated by consistency in quality.
non-tariff barriers that may still exist).

Rivalry within the Industry: High Market Strength of Consumers:

• There is keen competition in Increasing
select segments (such as the • Increases awareness among
compact and Mid-size segments consumers has raised expectations.
in passenger cars, and the Thus, the ability to innovate
motorcycle segment in two- (technology being the enabler) is
wheelers). critical.
• New multinational players may • Product Differentiation via new
enter the market. features, improved performance and
after sales support is critical.
• Increases competitive intensity has
limited the pricing power of
manufacturers.

Threat from Substitutes:

Low-Medium
• With consumer preferences
changing, inter-product
substitution is taking place
(scooters are being replaced
by motorcycles, and Mini cars
by Compact Mid-size cars.

5
 ABOUT THE ORGANIZATION AND ITS HISTORY

ESTABLISHMENT OF MARUTI UDYOG LIMITED

1. Incorporated on February 24 , 1981.

2. Mou signed on april 4 , 1982.
3. License and j.v agreement signed on octuber 2 , 1982.
4. Plants located at Gurgaon , Haryana.
5. Head office located at New Delhi.
6. Ownership – GOI 49.74% , SMC 50% , MEMBF 0.26%

Maruti was established in February 1981 by Sanjay Gandhi on Background of GovernmentofIndia

though the actual production commenced only in 1983. It started with the Maruti 800, based on the
SuzukiAlto car which at the time was the only modern car available in India. Originally, 74% of the
company was owned by the Indiangovernment, and 26% by Suzuki of Japan. As of May 2007, the
government of India sold its complete share to Indian financial institutions and no longer has any
stake in Maruti Udyog.

In 2015 Maruti Suzuki launched NEXA, a new dealership format for its premium cars. Maruti
currently sells the XL 6, Baleno, S-Cross, Ciaz and Ignis through NEXA outlets. S-Cross was the
first car to be sold through NEXA outlets.

To build something endurable, one has to invest considerable amount of time, thought and money. A
similar story went into the making of Maruti Suzuki Nexa.

Maruti Suzuki is the most loved car brand of India for its great value, fuel efficiency and huge
service network. As per reports, the brand controls over 45% of the Indian car market with its
small cars. Some of its popular products involve Alto,Wagon R,Swift, Brezza, Ertiga, Celerio
andVan(Omni).

6
However, over the years, the brand has not been able to foray into the premium car segment
despite repeated attempts with products such as Kizashi and Vitara.

Some of the reasons for this failure are attributed to reasons like Maruti Suzuki being known as
affordable, fuel efficient and great value providing car brand. Secondly, it has not been positioned
as high-end brand, and hence people ask - Why should I pay such a high price for a Maruti Car?

However, lately, Maruti Suzuki has returned with a fresh attempt to enter the high-end car segment
with the launch of first of its kind premium retail network - Nexa. In recent times, Nexa is one of
the biggest bets from the Maruti Suzuki in the Indian market.

7
 MARUTI SUZUKI NEXA

Nexa is a retail network from Maruti Suzuki that caters the high-end consumers who have gone
beyond their first cars and are now looking for an experience. It offers a high level of sophistication
and is based on the principles of exclusivity, pampering and listening to the consumer. But creating
Nexa was a mammoth task for both the brand and Indian team, the agency entrusted with the
responsibility of creating Nexa. On to the drawing board, the agency had to revisit the entire journey
of customer's experience while buying a Maruti.

Designed on 'monochromatic' theme, Nexa dealerships are developed to lure customers looking to
buy premium cars, as these would offer them a plusher buying experience. The Nexa outlets will
have a black & white monochrome colour scheme so that the spotlight is on the displayed products.
The company also informed that just like the S-Cross, all the vehicles to be sold through Nexa will
just feature a Suzuki logo and won't carry a Maruti Suzuki nameplate.

The aim of Nexa dealerships is to maintain a premium feel and offer the customers a more
premium feel. Exclusive dealerships that retail only the premium offerings from Maruti Suzuki
such as the S-Cross and Baleno. Future products could include the facelift versions.

• Fully trained ‗relationship managers‘ that cater all the needs of the customers.

• The showrooms are equipped with iPads and Apple TVs in order to visualise every
aspect of the cars on sale.

• Smartphone app to track service history, book servicing appointments, emergency

support, accessory purchase, etc.

• Black and White monochromatic colour theme for NEXA dealerships

• Dedicated delivery area inside the showroom. The customer drives his/her new car right
out of the showroom. Dealerships will also play your favourite music at the time of
delivery.

8
VISION
We have chosen a road and that drives us extra miles to achieve every endeavour. Here is
what we at Maruti Suzuki believe in:
• Customer Obsession
• Fast, Flexible & First Mover
• Innovation & Creativity
• Networking & Partnership
• Openness & Learning

VALUES

• CUSTOMER OBSESSION
• FAST , FLEXIBLE AND FAST MOVER
• INNOVATION AND CREATIVITY
• NETWORKING AND PARTNERSHIP
• OPENNESS AND LEARNING

9
 MARUTI-MARKETING GENIUS

Here came the most important aspect of the launch – the marketing strategy. This was a factor that
could make or mar the success of the Santro. Hyundai tied up with the advertising agency Saatchi
and Saatchi, who hit upon a novel strategy. Bollywood star Shah Rukh Khan was roped in to be the
brand ambassador. A three-pronged strategy was designed to attract the consumer: Educate Indian
Consumers about Hyundai
• Create hype and expectations about the Santro
• Explain the virtues of the Santro
The TV & Press Campaign broke in June 1998. The initial TV spots and the press campaign showed
Shah Rukh Khan being approached by a Hyundai official to advertise the Santro. Shah Rukh was not
convinced about Hyundai and he was shown to ask all questions a normal Indian consumer is
expected to ask. What is Hyundai? Why should I advertise for the Santro? Will it match customer
service expectations? What about dealer networks? How can an international car meet the
requirements of Indian roads? As the campaign went through all of these questions, the Hyundai
official answered Shah Rukh Khan. By the time the car was actually launched, Shah Rukh Khan
proclaims, ―he is convincedǁ. He declares that he is now ready to advertise the Santro since he is
certain that the Santro is the car for India. This high profile campaign backed by some very
innovative media buying, which went for maximum coverage with the minimum budget, broke all
grounds in terms of creating consumer expectations and hype in the market.
Along with the Advertising Campaign, the Sales Team worked burning midnight oil in creating the
dealer network across the length and breadth of the country. The wide dealer network would prove to
be invaluable in ensuring that the Santro would be available to anyone who wants to buy it. An
important pre-requisite for the dealer network was a fully functional workshop area with imported
international standard equipment and engineers trained in Hyundai‘s parent training centre in South
Korea and localised training provided in the Chennai Plant.

10
ARRIVAL OF SMALL CARS IN INDIAN MARKET WAS THE BEST THING
TO HAVE HAPPENED TO MARUTI

The race for India's small-car market has begun. But only those among the big four who get all their
strategies right will win this unforgiving contest. The prize: not just the largest automobile segment,
but also survival in this market. They're lined up for the last lap. With Market India becoming a
minefield for the world's largest auto-makers, the Formula I has become brighter than the red lights
that have stopped them in their tracks so far--only the small car will enable endurance. Bumper-to-
bumper, therefore, the combatants are accelerating towards the small-car segment. Amounting to 60
per cent of the Rs 14,500-crore automobiles market, and hitherto monopolised by the Rs 8,454-crore
Maruti Udyog with its Maruti 800 and Zen, it's the final frontier between survival and extinction. So
far, accustomed as they are to the priorities of the customer in the developed markets, the global
auto-makers have taken many wrong turns in India. Only now, after many knocks, crashes, and
repair jobs, are they back on track, heading towards their destination.

But neither the road nor the end-point of their journey is wide enough for all of them. At a projected
6-lakh units by 2000, demand for cars is still 25 per cent less than the number of F-150 pick-up
trucks sold by the $153.62-billion Ford Motor Co. in 1997. But the importance of India on the world
auto map is strategic. With an estimated total capacity of 58 million units a year, the global auto
industry is racing far a head of the demand of 45 million units. Markets in North America, Europe,
and Japan--which account for 74 per cent of the demand--have become saturated. Global car-
manufacturers will need to plant their feet in a low-cost, young, stable market to sell their products to
create a global supply-base for cars and components. The first wave of manufacturers simply failed
to make a splash in India. They were revving up for a growth that never happened. Their entry
reasoning: since India had been a small-car market for years, it was only a matter of time before it
enlarged to accommodate bigger, luxury cars. That the logic was flawed has now become evident.
India is still a small-car market for anyone who wants both revenues and profits.

Not surprisingly, Ford (which launched the 1,300-cc petrol and the 1,800-cc diesel Escort in 1996),
the $178.17-billion General Motors (which entered with the 1,600-cc Opel Astra in 1996), and the
$72-billion Daewoo Group's Rs 963.37-crore Daewoo Motors (which launched the 1,498-cc Cielo in
1995) are limping at the starting-block. None of the 3 has managed to chalk up sales of more than
18,000 units a year. Even Maruti Udyog--a joint venture between the $12.12-billion Suzuki Motor
Corporation of Japan and the Government of India--has been unable to grow the luxury segment. At

11
18,000 units in 1997-98, its 1,300-cc Esteem luxury car's sales fell by 28 per cent. Explains B.V.R.
Subbu, 43, Director (Sales & Marketing), Hyundai Motor India: "Traditional mid-car buyers are
turning to small cars; they are waiting for new technologies." Within 8 months of the 1,468-cc City's
launch in January, 1998, the $48.87-billion Honda Motor has sold 4,180 cars in the Indian market,
which is more than the combined sales (3,317 units) of the Astra and the Escort. But despite Honda's
initial success, the luxury-car segment has plateaued, and there seems to be room for just one player.
In the past 3 years, the segment has shrunk in value, dashing car-makers' hopes of rebuilding their
futures in India. Naturally, the only safe haven that remains is the small-car segment, which is 2.45
lakh units in size. And the only segment expected to grow at 15 per cent a year for the next 5 years.
The new millennium cannot but belong to the small car. However, economics of upstream
manufacture will only ensure survival. Sophisticated downstream skills are essential to make inroads
into the tough Maruti Udyog territory.

BUILDING COMPETITIVE STRATEGIES

But strategies, like cars, must feed on volumes. And how much is the sub-compact segment likely to
yield in 1998-99? Maruti Udyog expects the sales of the Zen to cross the 1-lakh-unit mark.
Assuming that at least a third of the small-car owning population--which includes customers who
have been using the Maruti 800, say, for at least 3 years--graduates to a sub-compact, that means a
market for at least another 1 lakh cars. Even if the 2-lakh mark is not breached in the next 5 months,
1999-2000 will be the Year Of The Upgrade, the economy permitting. Which is why the second
wave is focused on the small segment--from the mini to the sub-compact to the small car. On that
relatively stable bandwagon is perched the goliath, Maruti Udyog, 2 newcomers--the $28-billion
Hyundai Motor of South Korea and the Rs 7,450.34-crore telco--and one revitalised company,
Daewoo Motors. By drawing on their intrinsic strengths, each is evolving a unique strategy to
overtake competition. BT test-drives the strategic responses of the second wave and assesses their
chances of survival.

In less than two decades, India has ascended the ladder of global competitiveness and improved its
business environment for investors through a consistent focus on economic reforms. Even more
creditable is the fact that this growth comes on the back of an ever-strengthening social infrastructure
supported by vibrant democracy. India today is the hotbed of entrepreneurial activity. Wealth
creators and world-beaters are visible in sectors after sector. India‘s economy has more than doubled
in real terms since reform began in 1991. Consumer demand, increasing three to five times faster
than the economy, reflects the aspirations of a vibrant, growing and young middle class; India is

12
home to 20 per cent of the world‘s population under the age of 24. With more than 200 television
channels offering a window to the world, Indians are perhaps the most rapidly evolving consumers
across the globe. Successful economic reforms, favourable media disposition and an overall positive
economic scenario have placed a spotlight on the country. Indian companies are making overseas
acquisitions, capital markets are booming, FIIs are pumping money in, FOREX reserves are a record
high and the political economy has gained credibility in the global investor community and world
media. Innovative products, innovative processes, innovative manufacturing methods are enticing
foreign investors and multinationals to India. What is `India' for the world? It is a millennia-old
civilization. It is also the world's premier IT services provider. The world's back office A global R &
D hub. Emerging small-car hub. Repository, arguably, of the world's largest number of engineers,
doctors, accountants, and so on. To bring it all down to a single idea – India is ready with various
touch points: from nation branding to product branding. Car manufacturers everywhere are struck by
India‘s engineering and design capabilities. Toyota is planning to set up a research Centre in India.
Daimler Chrysler and General Motors have done that already and Honda Siel, Ford India, Ashok
Leyland and Maruti Suzuki spend millions of dollars on research and development activities and it
plans to make India a hub for Suzuki‘s small cars. India may never become a purely export-driven
manufacturing country like Malaysia or Korea or Thailand. Going forward, India is yet better placed
as a low cost-manufacturing base.

13
ORGANIZATIONAL STRUCTURE

14
 PRODUCT

MODEL NAME - S-CROSS

PRICE STARTING AT RS80,5525 ONLY

ENGINE DDiS 320 DDiS 200

Valve System DOHC DOHC

Engine Capacity(cc) / No. of cylinder 1598/4 1248/4

Bore x Stroke(mm) 79.5 x 80.5 69.6 x 82

Max Power(kW@rpm) 88@3750 66@4000

Max. Torque(Nm@rpm) 320@1750 200@1750

Fuel tank Capacity (l) 48 48

Fuel efficiency(km/l) 22.25** 23.65**

Emission Standard BS IV BS IV

15
MODEL NAME – CIAZ

PRICE STARTING AT RS 9,52,215 ONLY

ENGINE PETROL DISEL

Valve System DOHC DOHC

Engine Capacity(cc) / No. of cylinder 1373/4 1248/4

Bore x Stroke(mm) 73 x82 69.6 x 82

Max Power(kW@rpm) 68/3750 66/4000

Max. Torque(Nm@rpm) 130/1750 200/1750

Fuel tank Capacity (l) 43 43

Fuel efficiency(km/l) 20.25** 28.65**

Emission Standard BS IV BS IV

16
MODEL NAME - BALENO

PRICE STARTING AT RS 526375 ONLY

ENGINE PETROL DISEL
Valve System DOHC DOHC

Engine Capacity(cc) / No. of cylinder 1197/4 1248/4

Bore x Stroke(mm) 73 x82 69.6 x 82

Max Power(kW@rpm) 62/6000 55.2/4000

Max. Torque(Nm@rpm) 115/4000 190/2000

Fuel tank Capacity (l) 37 37

Fuel efficiency(km/l) 21.4** 27.39**

Emission Standard BS IV BS IV

17
 MODEL NAME - IGNIS

PRICE STARTING FROM

ENGINE PETROL DISEL
Valve System DOHC DOHC

Engine Capacity(cc) / No. of cylinder 1197/4 1248/4

Bore x Stroke(mm) 73 x82 69.6 x 82

Max Power(kW@rpm) 61/6000 55.2/4000

Max. Torque(Nm@rpm) 113/4000 190/2000

Fuel tank Capacity (l) 37 37

Fuel efficiency(km/l) 20.89** 26.80**

Emission Standard BS IV BS IV

18
 CHALLENGES OR PROBLEM ENCOUNTERED

The MD & CEO of Maruti Suzuki is quick to admit though that it is not easy to develop a product as
it takes time along with technology and experience which are not easily transferable skills. Indian
engineers have, of course, been sent to Japan R&D over the last decade to try and understand what it
takes.

―Gradually, their capability has increased but there is still a gap between Japanese engineers and
their Indian counterparts. It is becoming narrower though and we need to develop people‘s
capabilities to the desired level,ǁ

This kind of work is more about creativity than skills alone. While enhancing or upgrading skills is
important, creative capabilities play a bigger role in development. ―Creativity is not easy to learn
and needs to be captured earlier. It is not the same for all people and takes time,ǁ.

Developing this talent becomes especially important as India is already the biggest market for Suzuki
and tipped to play a bigger role in the coming years. ―The Indian market is evolving with diverse
customer patterns and preferences right from entry to luxury cars. There are many categories of
customers and we also need to keep changing keeping in line with demand,ǁ

19
 MARKETING STRATEGY OF MARUTI SUZUKI (PVT.) LIMITED

The marketing strategy of the Maruti Suzuki Pvt. Ltd. can be measured from the following story:

EFFICIENT PRODUCTION AND DISTRIBUTION CAPABILITIES

Just three months after it launched Swift, Maruti Udyog Limited has already sold over 8,000 units of
the car and added another 5,000 next month. There's a four-month waiting period for the 1,298-cc
hatchback -- the company claims more than 9,000 bookings before the car was launched. And that's
even while competitors -- Corsa Sail, Hyundai Getz and Fiat Palio -- are available off the shelf. Not
surprisingly, MUL now has a lot riding on the car: there's over Rs 440 crore (Rs 4.40 billion)
invested in the project (Rs 250 crore-odd is MUL's share). Not only is the company hoping that the
Swift will help expand the market for the B-plus segment (premium hatchbacks), it's also counting
on Swift to make a style statement -- that Suzuki can deliver good-looking cars on Indian roads. For
a company that has been known more for its value-for-money proposition -- from the 800 to the
Esteem -- that's important. "It's not as if our cars weren't style statements. It's just that with Swift, we
have made a break from the past," reveals a company official.

The buzz around Swift began in December 2004 -- five months before its launch. All new Wagon Rs
and Maruti Omnis came with stickers and sunshields that proclaimed "My next car is a Swift."
Unlike most car launches, where the look of the vehicle is kept under wraps until the last possible
moment, photos and specs were made available at showrooms several months earlier. Models of the
car were placed on high platforms at busy intersections in Delhi; while cars were on display in malls.
"It works well for those who don't have the inclination to really go to a dealer and check out the car,"
says a company official. The launch was staggered over three to four days in 15 cities across the
country, coinciding with the worldwide launch of the car. MUL also made good use of its Rs 20
crore (Rs 200 million) marketing budget. For the first time, it opted for an in-film placement -- Swift
appeared in the Bollywood hit Bunty Aur Babli, which was released on the same day as the car
launch, May 27. And it trained 1,000 salespeople -- called "energisers" -- to exclusively sell the
Swift. Perhaps the Swift's biggest plus is its price. Introduced at Rs 387,000 for the base model, it
was close to about Rs 50,000 less than its competitors. Even the top-end version was Rs 70,000
cheaper than the Hyundai Getz GLS. MUL does not want to give this pricing advantage away.
Although it hiked prices by Rs 10,000 in early June, advance bookings were honoured at the

20
introductory price. And since the car is priced at just under Rs 400,000, Delhi residents pay only 2
per cent road tax, compared to 4 per cent for a car that costs more than Rs 400,000.

Suzuki Motor Corporation's expansion plans, which set the Japanese company on a collision course
with the government, could turn out to be a big push for the automobile components industry. The
250,000 cars per annum assembly unit announced by Suzuki could result in an investment of up to
Rs 7,500 crore (Rs 75 billion) by the components industry. The entire sourcing for the venture is
proposed to be done locally. Though Maruti Udyog, which will own 70 per cent of the venture, is yet
to announce its investment in the project, the automobile components industry expects it to be
around Rs 2,500 crore (Rs 25 billion). As every rupee spent in a car project needs to be backed by a
downstream investment of Rs 3 in components, vendors say the industry could see an investment of
Rs 7,500 crore. "We are very bullish on this development, though we are yet to do our calculations
on what the Suzuki Motor investment means to us exactly," Surinder Kapur, chairman of the Sona
Group, one of the largest vendors of Maruti Udyog, told Business Standard. Any new demand can be
met only by adding fresh capacity. "The automobile components industry has to make substantial
investments in increasing capacity to meet the additional demand," said Dilip Chenoy, director-
general, Society of Indian Automobile Manufacturers. McKinsey & Co had in a recent study said the
Indian automobile component industry had the potential to become a $33-40 billion industry by
2015. Suzuki's expansion plans could turn out to be a big push in that direction.

Having successfully completed the supply of fuel neck and real axle for Maruti Udyog Ltd (MUL)
vehicles during last fiscal, Jay Bharat Maruti Ltd (JBML), the Rs 422-crore manufacturer of
components for automotive applications, is now working on another expansion programme. The
company is also planning to set up a coating facility and additional welding lines. Further, it has also
decided to expand its existing capacity to meet the increased demand of MUL. "At present, the
company is working on a major expansion plan for new model of Maruti YN4 and will be setting up
facilities for manufacturing of the rear axle in technical collaboration with Yorozu Corporation,
Japan," a JBML official told the researcher. However, declining to divulge the details on investments
involved in the expansion project and the implementation schedule, he said, "the details for the
finalisation of technical collaboration and expansion project are still being worked out in constant
consultations with Maruti Udyog. We will announce them as and when they were finalised." The
official said that Maruti Udyog has recorded first ever sales of 4,72,122 vehicles in its 20 years of
operations with 30 per cent growth over the previous year. "Our performance is mainly attributable
to performance of MUL, our main customer.

21
During last fiscal, we have recorded an increase of 35.39 per cent in sales over the previous year."
Stating that the company has already started commercial supplies of fuel neck to MUL During last
fiscal, the JBML official said the test trials have been conducted for rear axle and the commercial
supplies would start during the first half of current fiscal. Expressing concern over the unprecedented
hike in steel prices, the official said the steel prices during last fiscal increased by almost 40 per cent.
According to him, reduction in import duty on components, strengthening of rupee against dollar,
thus making import cheaper, and signing of free trade agreement with other countries would further
add to the concerns.

22
 THOROUGH PROFESSIONAL MANAGEMENT PHILOSOPHY

Japanese Management Philosophy of Team Spirit

• Common uniform
• Open office
• Common Canteen
• Open office – Easy accessibility , Speedy Communication and decision making.
• Morning Meetings
• Morning Exercises

The unit sales of the company during 2005-06 grew faster than the rest of the domestic car industry,
and was the highest ever in Maruti‘s history. Gross Sales Revenue grew by 11 per cent over the
previous year. Net Profit increased by 39 per cent compared to 2004-05. The ratio of Net Profit to
Net Sales was 9.9 per cent compared to 7.8 per cent in 2004-05. During the year, work on the
company‘s new ventures proceeded as per plan.

LATEST FACULITIES

This state-of-the-art facility, located in Manesar in Haryana, begins with an initial capacity of
100,000 units per year. This will be over and above the capability of over 600,000 units a year in our
existing facility in Gurgaon, Haryana. The new car plant at Manesar, together with Suzuki Motor
Corporation‘s new plant in Sagara, Japan, has been designed to meet the Suzuki group‘s global
aspirations in the future. As such, the Manesar plant comes equipped with many sophisticated
systems and processes to ensure high quality and productivity on the shop floor.

The company is also committed to upgrading facilities at the existing plant in Gurgaon. The total
investment by Maruti and Suzuki in the new car plant, the diesel engine and transmission facility,
upgradation of the existing plant and in launching new models will be close to Rs 6000 crore. The
other major venture – the diesel engine plant --- is also on course to begin operations in this calendar
year. The plant will manufacture state-of-the-art, 1.3 litre diesel engines for cars. It will start with an
initial capacity of 100,000 diesel engines per year. This will enable Maruti‘s entry into the significant
diesel car segment of the domestic passenger car market. These new facilities will strengthen the

23
company‘s leadership position in the domestic passenger car market. At the same time, they
symbolize Suzuki Motor Corporation‘s continued commitment to India.

IMPRESSIVE GLOBAL HOLD

The company will launch a new export model during 2008-09. This compact car model, while
serving the Indian market, would be for export mainly to Europe. The company will target to export
100,000 units of this model annually. A few months ago, Suzuki Motor Corporation and Nissan
Motor Company decided to widen the scope of their global strategic alliance. As a first step, they
agreed to collaborate in manufacturing by utilizing the facilities of the company. In the new scenario,
India and Maruti have acquired a very important role in this alliance. The increased scale of
operations on account of the Nissan contract is likely to further improve cost and quality
competitiveness at the Maruti facilities, which in turn will benefit customers in the domestic market.
The company shares the Government of India‘s vision of making India a global hub for compact
cars. With Maruti emerging as a contract manufacturer for Nissan, India takes one step forward in
realizing that vision.

MOST EFFICIENT RESEARCH AND DEVELOPMENT

While Suzuki and Maruti remain committed to excellence in manufacturing, both companies are also
increasing collaboration in R & D. Suzuki Motor Corporation sees a major role for Maruti in the area
of R & D for cars in Asia. Building on the success of the Swift experience, where Maruti engineers
trained in Japan worked closely with their Suzuki counterparts to design and develop a new model,
the effort will be empower Maruti to independently develop cars to suit preferences of Indian
customers. The focus will be on tapping the vast talent pool available in India and develop people
through extended training at Suzuki Motor Corporation, Japan. This, combined with augmentation of
R & D facilities, will help Maruti acquire a preeminent position in Suzuki‘s global R & D set-up.

MARUTI’S STARATEGY TO COME UP WITH NEW MODELS & SURPRISE

MARKETERS

The company is aiming at sales of one million cars per year in 2010. Investment in new facilities and
in R & D, as outlined above, are both part of the strategy to achieve the ambitious sales goal. In
addition, the company will launch a series of new models to be able to attain the one million sale
target. It plans to launch five new models in the next five years to meet the needs of Indian

24
customers.. To sell one million cars in a year, the company will have to expand the network of sales
outlets as well as service workshops across the country. This process, which gathered pace in recent
years, is likely to accelerate in the next few years. Besides increasing the number of outlets, the
company will also revamp the quality of infrastructure and service at these outlets.

GRABBING COMPACT CAR OPPORTUNITY

The company believes that the low penetration rate of cars in India and the relatively lower
percentage of first time buyers present a tremendous opportunity for growth. Therefore, the
company‘s optimism stems from positive macro-economic factors, including significant GDP
growth, bias towards lower taxes, a young population, focus on roads and rural infrastructure and
growing consumerist aspirations. Like China before it, the Indian car market may be on the threshold
of explosive growth. This growth is likely to be driven by the entry-level segment. Over 25 million
Indians have bought two wheelers in the past five years, and will boost demand once they upgrade to
four wheels. The company, with a range of models in the entry level and compact segments, is best
placed to tap this opportunity. Suzuki Motor Corporation has been the leader of the minicar market
in Japan for over three decades. It has the right technology and the right products to tap the compact
car opportunity in India.

The expansion of their sales and service network, innovative and focused marketing initiatives,
aggressive cost reduction and productivity improvement programmes, their tie-ups with regional
finance companies and banks to expand the reach of organised finance, are all efforts to reach out to
entry level customers.

SHOWED GREAT SOCIAL RESPONSIBILITY

The company is conscious of its responsibility as a corporate citizen. During the year, the company
has expanded the number and reach of Maruti Driving Schools across the country. Equipped with
driving simulators and specially trained instructors, these schools provide a comprehensive theory-
cum-practical curriculum modeled on the best international driving schools. They have been very
well received, especially among women learners.

The recent decision of Suzuki to set up a separate joint venture for the manufacture of diesel engines
and a new plant had raised concerns that MUL may not be able to benefit substantially from any
future expansion plans. However, government intervention before the crucial board meeting to

25
decide on the joint venture assured MUL a substantial 70% stake in the joint venture for the new
vehicle manufacturing plant. MUL has been enjoying good growth in sales this fiscal with overall
sales in the Apr-Oct period growing by 20.6% YoY to 302871. Going forward too, we expect MUL
to enjoy good sales growth given its wide distribution network, high customer recall and attractive
pricing. We maintain our Out Performer rating on the stock with a target of Rs444.

Maruti Udyog Limited has led India‘s car market for more than a quarter of a century. First
established in 1981, the company is now a fully-fledged subsidiary of the Suzuki Motor Corporation.
Its principal activities include the manufacture and sale of motor vehicles and spare parts via a 300-
strong dealer network scattered across India. The year 2002 saw Maruti add finance, leasing,
insurance, and pre-owned car businesses to its portfolio, increasing the scale of its operations and
prompting a review of its processes and systems. Oracle Consulting was engaged to install a number
of Oracle E-Business Suite modules and integrate them with Maruti‘s existing systems. The eight-
month project involved managing up to 50 people, including Maruti staff, Oracle consultants, and
employees of third-party organizations. Oracle also assisted Maruti with change management, a
critical part of the process to ensure quick user acceptance.

GREAT MANAGEMENT CONTROL

Prior to employing Oracle, Maruti used a number of home-grown systems to manage its various
lines of business. Many of these disparate systems could not talk to each other, requiring staff to
enter data multiple times and consolidate information to generate management reports. The addition
of four new business sectors in 2002 created further pressures, requiring constant monitoring and
human intervention to keep the system operating across the hundreds of locations Maruti serves
within India. To support this growth and improve efficiency, the company decided to revamp its
information technology systems to provide end-to-end visibility into the organization. ―We were
looking for a flexible, expandable system that was easy to manage,ǁ said Rajesh Uppal, chief general
manager, information technology, Maruti Udyog. ―This would reduce the complexity of the IT
environment and our reliance on certain people to maintain the systems. And because our business is
undergoing a period of rapid expansion, it was important to have a standard system that could scale
easily.ǁ
To minimize the impact of the system change on its business, Maruti decided on a phased migration to
Oracle E-Business Suite. As a first step, the company decided to replace its financial, purchasing, and
human resources systems with Oracle Financials, Oracle Procurement, and a range of Oracle Human
Resources applications. Oracle Consulting was selected to supervise the implementation,

26
including determining Maruti‘s requirements and developing a project plan, designing the system,
deploying the software, managing the various parties involved, and providing post-implementation
support.

TIGHT PROJECT MANAGEMENT

As with all Oracle Consulting-led deployments, consultants sat down with Maruti managers and key
business users to scope out their requirements. A steering committee was set up to guide the
implementation and ensure consultants had recourse to senior executives for advice. The project plan
delineated the responsibilities of each party and incorporated monthly milestones and testing
deadlines. Oracle Consulting ensured a fast, problem-free installation by employing Oracle‘s
Business Flow Accelerators—an implementation approach that leverages predefined business flow
templates to reduce the time and cost associated with application deployments. A key project
challenge was interfacing the Oracle modules with Maruti‘s legacy systems, including direct item
procurement, dispatch systems, the time card system for attendance, and the Hyperion business
intelligence platform. The integration had to be completed without any impact on the company‘s
business, which frequently deals in large volumes. For example, Maruti generates more than 2,000
invoices each day and any lengthy interruptions could have disastrous impacts on cash flow further
down the line.

GREAT FUTURE PLANS

After the success of the financials, procurement, and human resources deployment, Maruti is
considering expanding its Oracle footprint. The company is evaluating Oracle Advanced Supply
Chain Management and Oracle Enterprise Asset Management. ―We would like to automate supply
chain management and integrate this process with the Oracle ERP system,ǁ said Uppal. ―We are
also looking at linking more systems with Oracle, so we can access real-time information across all
our businesses. I expect Oracle Consulting to play a role in future projects.ǁ

27
 A CRITICAL ANALYSIS OF MARKETING STRATEGY OF MARUTI SUZUKI

Strategy and timing are the Himalayas of marketing. Everything else is the Catskills. - Al Ries

Maruti has been successful in capturing the car market because of the excellent product it has
produced. The market research conducted by Maruti Suzuki showed that Indian cars were
overcrowded, with turbans and sarees to be accommodated. The idea was to create a voluminous
compact car. The ―tall boy‘ model was taken from the Atoz and it was redesigned to meet Indian
conditions. The car also gives high mileage. The engine delivers adequate torque i.e. the ability to
pull loads even at very low speeds---this proves to be very essential for slow and traffic-heavy Indian
conditions. The most important is the seating, which is, high and gives ―road commandǁ.

Maruti Suzuki was competing with Maruti Suzuki in the small car segment and it offered technology
that other car makers thought was too advanced for the slow growing Indian market. Maruti has now
built up a reputation such that it is the first preference of anybody who has driven or ridden in it.

The marketing strategy employed by Maruti Suzuki can be studied with insights into their STP
analysis and Marketing Mix.

PEST ANALYSIS

In order to understand the conditions under which the Maruti products were launched in the Indian
market, it‘s necessary to analyze the factors that influenced its effectiveness.

Political Conditions

• Maruti Suzuki entered India when liberalization was at its peak. As a result, everyone was
very open to the idea of foreign companies collaboration (Maruti India + Suzuki Japan)
setting up base in India.
• The government insisted on the Companies using 70% local content in the manufacture of the
cars as they would have generated tremendous revenue for India. Maruti Suzuki achieved this
in a very short time.
• A positive EXIM policy also has helped Maruti Suzuki to boost its top line with Exports of
Maruti Suzuki products to other countries.

28
 Economic Conditions

• The economic conditions during the launch of Maruti Suzuki were very relaxed and liberal.
Maruti Suzuki was launched when the country had just opened its doors to liberalization. So
there were no strict norms or bylaws that the company had to adhere by.
• The resources available in India were utilized by the multinationals (Suzuki), which
generated considerable revenue for the government.
• A booming banking sector and a phenomenal growth in Auto Loans market has made Maruti
Suzuki more affordable.

Social Conditions

• A rise in Middle class and concept of small nuclear families has propelled a demand of B-
Segment cars. Maruti Suzuki provides an exact choice for this demand leading to its high
growth.

Technological Conditions

• Since Maruti Suzuki manufacturers everything from the smallest of screws to the biggest of
machines in its factory it is able to maintain the efficiency of the machines. Maruti Suzuki
therefore manufactures cars under best of conditions with the best of machinery. As a result,
the cars manufactured are of top quality.

29
 STP – SEGMENTATION, TARGETING, POSITIONING

Marketing is not an event, but a process . . . It has a beginning, a middle, but never an end, for it is a
process. You improve it, perfect it, change it, even pause it. But you never stop it completely.

- Jay Conrad Levinson

Segmentation

Segmentation is based upon considerable evidence that a single marketing approach or formula will
not work for all members of the community to be served.

Geographic
The region of interest of Maruti Suzuki is whole India with special focus on Type A and fast
growing Type B cities across India.

Demographic
Age – Anybody of age between 20 – 40 yrs.
Income – Anybody with an income of over 4 lakh p.a.
Occupation – Millennials employed as professionals, managers and those want to buy their first car.
Social Class – Middle class, Upper middle, Lower Upper and Upper uppers.

Psychographic
Personality – Dreamers, those who want to achieve big, ambitious, price conscious, took their first
step towards success and value driven.

Behavioral
Benefits – Quality, Style, Price (economical)
User status – Potential users and first time users
Buyer – Readiness Stage – Those who are aware, informed, interested and intend to buy

30
Targeting
In evaluating the market segments Maruti Suzuki has looked at two factors - The segments overall
attractiveness and the companies resources. As is very clearly seen Maruti Suzuki has opted for a
selective specialization kind of targeting. Maruti Suzuki has selected a number of segments each
objectively attractive and appropriate. There is minimal synergy among the segments but each is a
cash cow. This multi segment strategy has had the effect of diversifying the firm‘s risk.

Having Bollywood celebrities to endorse its cars paid off for Maruti Suzuki. Bollywood celebrities
like Sunny Deol as a brand ambassador targets two sections of the society. Firstly, his glamorous and
sophisticated image appealed to the elite effecting their purchase decisions. Secondly, his adorable
persona appealed to the middle class buyers who wanted a good car for the ‗big‘ investment they
were making and for people who were graduating from the second hand car.
The low price tag of Maruti Suzuki initiated a price war among all companies and forced Tata Indica
to pre-pone its launch. The initial low price tag and strengthened by a solid marketing initiatives in
form of print advertisements provided a solid foundation for Maruti Suzuki in India which showed in
its sales of 17000 units in just 5 months.

Maruti Suzuki has identified its target market based on its pricing strategy. Swift aims to be the price
leader in B-Segment cars. It has always priced its base model lower than Zen or Indica giving all the
features which they give in their higher models. With a constant change in its positioning strategy,
Maruti Suzuki Swift has succeeded in identifying its target market every time and emerging as the
fastest selling car in its own segment. With the invent of Swift, Maruti Suzuki is looking towards
entire new segment of consumers and all set to target it to emerge as the market leader in B- Segment
cars.

31
Positioning
Since its inception, Swift has undergone a lot of changes in terms of its positioning. First it was
Swift, then Swift VXI, and then came finally Swift VDI.

When Swift was initially launched it was positioned as ―The Complete Family Carǁ. Since Swift
was launched in B-Segment, it had Santro and Tata Indica as its biggest competitors in that segment.
The stylish ‗Tall Boy‘ Design of Swift together with its slogan helped it to position itself as one of
the cars to look upon. With a constant change in its positioning, Maruti Suzuki always tried to keep
alive the buzz associated with Swift.

Maruti Suzuki repositioned Swift as ―Sunshine Car (smart car for young people)ǁ from earlier
―complete family carǁ. This was done because the competitors were coming out with similar
products and then Maruti Suzuki started what they call as ‗Emotional Positioning‘. This
repositioning of Swift also helped it to target the segment of first time car buyers. Even the print ads
at this time were designed in a way to project Swift as the first car for the fastest growing consumer
segment of India at that time, The Young Professionals, of the service industry that combined with
various loan facilities were too eager to buy their first car. This led to a phenomenonal growth in its
sales and further strengthening its position as a brand in consumer mind. Thus the repositioning of
Swift gave it an edge over its competitors and also to emerge as a tough rival to Maruti 800 as ‗The
First Car‘.

32
 RESEARCH ON MARKETING STRATEGY

RESEARCH PROBLEM OR LIMITATIONS OF RESEARCH

Due to the following unavoidable and uncontrollable factors the results might not be
accurate. Some of the problems might face while conducting the survey are as
follows:

1. Certain open-ended questions have been put in the questionnaire to give

respondents freedom to express their perception.
2. Time and cost constraints were also there
3. Chances of some biasness couldn’t be eliminated.
4. A sample size of 100 has been used due to time limitations.
5. The data has been collected from Delhi(North) and there the perception of the
people from the smaller towns could not be judged
6. Al the data has been collected at random but it is always liable fro biasness.
7. The primary data has been collected from the middle and upper section of the
society.

33
 RESEARCH METHODOLOGY

The purpose of methodology section in the report making is to describe the research process that is
followed while doing the main part. This would however include the research design, the sampling
procedure, and the data collection method. This section is perhaps difficult to write as it would also
involve some technical terms and may be much of the audience will nor be able to understand the
terminology used. The methodology followed by the researcher, during the preparation of the report
was:

Research Design
A research design is purely and simply the framework or plan for a study that guides the collection
and analysis of data. The survey research was used in this project, because consumer‘s feedback was
necessary for obtaining the data.

Research Instrument
For doing the survey research, structured questionnaire with both open-ended and closed-ended
questions was used.

Mode of Survey
The mode of survey was personal interview with the respondents during the filling up of the
questionnaires.

Personal Visits

As a part of the analysis, it was necessary to visit the students of different school, as it would always
help me knowing the nature of students. We visited different schools and asked the student different
questions which are formatted in the questionnaire.

34
 Data Sources
Primary Data
Primary data is that kind of data which is collected directly by the investigator himself for the
purpose of the specific study. Primary Data is collected by the investigator through interviews of
company employees, vendors, distributor etc. Data such collected is original in character. The
advantage of this method of collection is the authentic. A questionnaire of about 50 questions was
made and it was given to the dealers to fill it up for our research. The research was a kind of
conclusive research as it helps in the testing of hypothesis. The method of sampling was the
Random method as it is unbiased.

Secondary Data

When an investigator uses the data that has been already collected by others, is called secondary
data. The secondary data could be collected from Journals, Reports, libraries, magazines, fair &
conference and other publications. The advantages of the secondary data can be –It is economical,
both in terms of money and time spent .The researcher of the report also did the same and collected
secondary data from various internet sites like www.google.com, www.airtel.com, www.hutch.co.in
and many more. The researcher of the report also visited various libraries for collection of the
introduction part.

35
 QUESTIONNAIRE DESIGN

We make questionnaire to know which category of people opts for which kind of plans. In
this category the factors included are such as income, background, age, etc. This includes 2
types of questions
1. open ended
2. closed ended

1. open ended : In this respondents are not bounded to answer within a set of choices and can
give their own views
2. Close-ended: in this respondents are bounded to answer within a set of choices.

I have designed my questionnaire on the basis of close-ended questions as it is more

feasible to calculate data from it.

SAMPLE DESIGN:

While developing a sample design, following points should be kept in mind:

• Sampling unit: A decision has to be taken concerning a sampling unit before

selecting sample. Sampling unit may be a geographical one such as state, district, village etc
or a construction unit such as house, flat etc. or it ,may be as social unit such as family, club,
school etc or it may be an individual . the researcher will have to decide one or more of such
units that he has to select for his study

• Size of the sample: This refers to the number of items to be selected from the
universe to constitute a sample. This is a major problem before a researcher. The size of the
sample should be neither is excessively large, nor too small. it should be optimum
An optimum sample is one which fulfills the requirements of efficiency, representatives,
reliability and flexibility

36
 OBJECTIVES OF THE STUDY

The present study of the marketing strategy of the Maruti Suzuki (Pvt.) Limited revolves around the
following broad objectives:

(i) To study the evolution and growth of the Maruti Suzuki (Pvt.) Limited in the context
of the automobile revolution in India;
(ii) To study the growth strategy of the Maruti Suzuki (Pvt.) Limited and the marketing
methods followed by it in this regard.
(iii) To study the small car revolution in India and the contribution of the Maruti Suzuki
(Pvt.) Limited to it.

37
 DATA ANALYSIS

1. Are you aware about the present boom in Market?

(i) Yes
(ii) No.

90%
80%
70%
60%
50%

40% yes
30% no

20%
10%
0%
yes 82%
no 18%

As regard to market boom and the respondents awareness level about this, nearly 82% of the
respondents are aware about the market boom in the present economy, while the rest 18% are not
aware about any market boom. The awareness level is high among the middle and the upper middle
class, and particularly among the business class and the traders. One of the interesting finding of the
study was that many respondents confuse between inflation and market growth. Respondents
belonging to lower middle and middle class confuse whether price rise has anything to do with the
automobile industry scenario.
About the reasons, 65% of the respondents who are aware about the market boom feel that it reflects
the resilience of the Indian economy and reflects a true picture of it. This they attribute to the
persistent increase in Sensex and continuing economic growth rate which is somehow near the
double digit mark. 27% of the respondents who are aware about the market boom feel that this is a
temporary situation which is likely to recede. Rest of the respondents could not attribute any
concrete causal relationship for the market boom.

38
2. What method do you follow for marketing of your products?

(i) Only Direct sales Method --------------------- 28 percent

(ii) Only Indirect Dealership Method ----------------- 18 percent
(iii) Both 54 percent

60%

50%

40%

30%

only direct sales method

20%
only indirect sales method
10%
both
0%
only direct sales method 28%
only indirect sales method 18%
both 54%

39
3. Do you think Advertisement is an effective method of selling your

automobile products?

(iv) Yes 45 percent

(v) No 18 percent
(vi) Do not know/ Cannot say ------------------------ 27 percent

45%

40%

35%

30%

25%

20% yes
no
15%
cant say
10%

5%
0%
yes 45%
no 18%
cant say 27%

40
 4. What type of advertising will be helpful in increasing salability of your auto

products?

(vii) Product Specific------------------------------------ 34 percent

(viii) Company Specific ---------------------------------- 22 percent
(ix) Personality oriented -------------------------------- 17 percent
(x) Do not know / Cannot say ------------------------- 27 percent

35%

30%

25%

20%

product specific
15%
company specific
personality specific
10%
cant say

5%

0%
product specific 34%
company specific 22%
personality specific 17%
cant say 27%

41
5. Do you think that branding helps in the marketing of your automobile products?

(xi) Yes 34 percent

(xii) No 27 percent
(xiii) Do not know/ Cannot say ------------------------ 39 percent

40%

35%

30%

25%

20%
yes
15% no
cant say
10%

5%

0%
yes 34%
no 27%
cant say 39%

42
 6. Do you think that auto fairs are effective methods of sale promotion?

(xiv) Yes 55 percent

(xv) No 12 percent
(xvi) Do not know/ Cannot say ------------------------ 33 percent

60%

50%

40%

30%
yes
no
20%
cant say

10%

0%
yes 55%
no 12%
cant say 33%

43
7. Do you think that Foreign Direct Investment (FDI ) should be allowed in the auto

mobile sector in India?

(xvii) Yes 34 percent

(xviii) No 32 percent
(xix) Do not know/ Cannot say ------------------------ 34 percent

34%

34%

33%

33%
yes
no
32%
cant say

32%

31%
yes 34%
no 32%
cant say 34%

44
 8. Do you follow branding of products as a Marketing strategy?

(i) Yes 74 percent

(ii) No 05 percent
(iii) Do not know/ Cannot say ----------------------------------------------- 21 percent

80%

70%

60%

50%

40%
yes
30% no
cant say
20%

10%

0%
yes 74%
no 5%
cant say 21%

45
 9. Does branding of products helps to improve the marketing potential of
your products?

(i) Yes 68 percent

(ii) No 12 percent(iii)
Do not know/ Cannot say 20 percent

70%

60%

50%

40%

yes
30%
no
20% cant say

10%

0%
yes 68%
no 12%
cant say 20%

46
 10. Future of the automobile industry in India.

(i) The boom will continue---------------------------------------------- 75 percent (ii)

The boom is a temporary economic situation ---------------- 12 percent (iii) Do
not know/ Cannot say 13 percent

80%

70%

60%

50%

40%
yes
30% no
cant say
20%

10%

0%
yes 75%
no 12%
cant say 13%

47
 11. Major Weakness of Maruti Suzuki’s Marketing strategy.

• Branding 14 per cent

• Publicity 09 percent
• Infrastructure assessment and Development --------------------------------- 77 percent

80%

70%

60%

50%

40%

30%

20%

10%
0%
branding 14% branding
publicity 9%
infrastructure assessment & development 77% publicity

infrastructure assessment
& development

48
 12. How do the Foreign Automobile Companies affect the prospects of

the domestic players in the Indian market?

(i) 32 percent ------------------------------ have reduced the profit margin of the domestic
players
(ii) 53 percent ---------------------------------- have made the automobile industry more
competitive.
(iii) 07 percent ------------------------------- do not have significant effects on the domestic
players operating in the automobile industry
(iv) 08 percent -------------------------------- do not know / cannot say

60%

50%

40%

30%
reduced the profit margin
20%
made industry
10% more competitive

do not make any significant

0% effect
reduced the profit margin 32%
made industry more competitive 53%
do not make any significant effect 15%

49
 13. Maruti Suzuki has a future growth. You opinion

(i) 75 percent -------------------- Maruti Suzuki is gradually spreding its wings and being a
very big company has the capacity to absorb short term losses, hence has a very good
prospect for the future market in India.
(ii) 20 percent ---------------------- Its future is like any other private automobile companies in
India
(iii) 5 percent --------------------- do not know/ cannot say

80%
70%
60%
50%
40%
Maruti is growing
30% and has good future
20% Maruti is like
any other
10% automobile
0% company
Maruti is growing and has good future cant say
75%
Maruti is like any other automobile company 20%
cant say 5%

50
 14. Which is the major factor to increase the sale of your products?

(i) Only Brand ---------------------- 17percent

(ii) Demand-Supply factors ------- 35 percent
(iii) Only Quality ----------------------- 23 percent
(iv) Other factors --------- 25 percent

35%

30%

25%

20%

15% only brand

10% demand-supply factor

only quality
5%
others
0%
only brand 17%
demand-supply factor 35%
only quality 23%
others 25%

51
 15. Do you think brand extension is necessary for the company? If yes, why?
(i) 78 percent Yes
(ii) 04 percent No
(iii) 18 percent -------------------------------- Do not know / Can not say

80%

70%

60%

50%

40%
yes
30% no
cant say
20%

10%

0%
yes 78%
no 4%
cant say 18%

Those who believe that brand extension is necessary as part of its marketing strategy holds
the view that when a known brand extends into a product category that involves
sophisticated and state-of-the-art technology, consumers face uncertainty and perceive a
financial risk when considering the extension for purchase. The recognition that brands are
a powerful yet underutilized assets is why trademark licensing has become a popular
marketing strategy. Because many brand owners don't have the resources to pursue every
viable business opportunity, they utilize trademark licensing to enter new markets beyond
their core competencies.

52
 16. Which are the products of the company that are favourite among

the customers? Please give the reasons as you think.

(i) 55 percent --------------------- Quality based

(ii) 30 percent -------------------- Economical/ Cheap
(iii) 06 percent ----------------------- Branded
(iv) 09 percent ------------------------- Do not know /Cannot say

60%

50%

40%

30%
quality based

20% economical
branded
10% cant say

0%
quality based 55%
economical 30%
branded 6%
cant say 9%

53
 17. Do you see the probability of a separation between Maruti and Suzuki in future?

(i) Yes 18 percent

(ii) No 74 percent
(iii) Do not know/ Cannot say ------------------------------------------- 08 percent

60%

50%

40%
reduced the profit
30% margin

made industry more

20% competitive

10% do not make any

significant effect
0%
reduced the profit margin 32%
made industry more competitive 53%
do not make any significant effect 15%

54
 QUESTIONNAIRE

(1) Are you aware about the present boom in Market?

• Yes
• No

2. What method do you follow for marketing of your products?

• Only Direct sales Method --------------------- 28 percent

• Only Indirect Dealership Method ----------------- 18 percent
• Both 54 percent

3. Do you think Advertisement is an effective method of selling your automobile

products?

• Yes 45 percent
• No 18 percent
• Do not know/ Cannot say ------------------------ 27 percent
4. What type of advertising will be helpful in increasing salability of your auto

products?

• Product Specific 34 percent

• Company Specific--------------------------------- 22 percent
• Personality oriented ------------------------------- 17 percent
• Do not know / Cannot say -------------------------- 27 percent
5. Do you think that branding helps in the marketing of your automobile products?

• Yes 34 percent
• No 27 percent
• Do not know/ Cannot say ------------------------ 39 percent

6. Do you think that auto fairs are effective methods of sale promotion?

55
• Yes 55 percent
• No 12 percent
• Do not know/ Cannot say ------------------------ 33 percent
7. Do you think that Foreign Direct Investment (FDI ) should be allowed in the auto

mobile sector in India?

• Yes 34 percent
• No 32 percent
• Do not know/ Cannot say------------------------- 34 percent

12. Does branding of products helps to improve the marketing potential of your
products?

• Yes 68 percent
• No 12 percent
• Do not know/ Can not say -------------------- 20 percent

13. Future of the automobile industry in India.

• The boom will continue --------------------------------------------- 75 percent

• The boom is a temporary economic situation ----------------- 12 percent
• Do not know/ Can not say ------------------------------------------- 13 percent

14. Major Weakness of Maruti Suzuki’s Marketing strategy.

• Branding 14 per cent

• Publicity 09 percent
• Infrastructure assessment and Development --------------------------------- 77 percent

56
 15. How do the Foreign Automobile Companies affect the prospects of the

domestic players in the Indian market?

• 32 percent ------------------------------ have reduced the profit margin of the domestic

players
• 53 percent ---------------------------------- have made the automobile industry more
competitive.
• 07 percent ------------------------------- do not have significant effects on the domestic
players operating in the automobile industry
• 08 percent ------------------------------- do not know / can not say
16. Maruti Suzuki has a future growth. You opinion

• 75 percent----------------------- Maruti Suzuki is gradually spreding its wings and being a

very big company has the capacity to absorb short term losses, hence has a very good
prospect for the future market in India.
• 20 percent------------------------ Its future is like any other private automobile companies in
India
• 5 percent --------------------- do not know/ can not say

17. Which is the major factor to increase the sale of your products?

• Only Brand ---------------------- 17percent

• Demand-Supply factors ------- 35 percent
• Only Quality ----------------------- 23 percent
• Other factors --------- 25 percent

18. Do you think brand extension is necessary for the company? If yes, why?

• 78 percent Yes
• 04 percent No
• 18 percent -------------------------------- Do not know / Can not say

57
 19. Which are the products of the company that are favourite among the

customers? Please give the reasons as you think.

• 55 percent--------------------- Quality based

• 30 percent--------------------- Economical/ Cheap
• 06 percent ---------------------- Branded
• 09 percent ------------------------ Do not know /Can not say
20. Do you see the probability of a separation between Maruti and Suzuki in future?

• Yes ------------------------------------------------------------------ 18 percent

• No -------------------------------------------------------------------- 74 percent
• Do not know/ Can not say ------------------------------------------ 08 percent

58
 CONCLUSION
Maruti Udyog Ltd., a joint venture between the Government of India and the Suzuki Motor
Corporation of Japan was India‘s largest automobile company in 2005. It operated in the passenger
vehicle market and manufactured affordable and fuel efficient cars for the Indian masses. Maruti 800
was its flagship small sized car and was the bestselling car in India since decades. In 2005, Suzuki
launched their global car ‗Swift‘ in international markets and later in India. Swift was the first
stylish compact car from the stable of Maruti and was a differentiator from its earlier products. The
launch of Swift had brought Maruti in lime-light and various global international automobile
manufacturers announced their plans to boost their investments in India and launch competing cars.
The competition was expected to intensify to grab the burgeoning customer base and again in 2015
Maruti launches retail market name as NEXA for premium cars which boast the marketing sector of
Maruti Suzuki pvt ltd.

The Indian car market currently appears to be at a crossroads, where car marketers are attempting to
change customer perceptions of their brands and where specific buying motivations appear to be
replacing generalities.

This meanwhile, is quite unlike the west where buyers consider aesthetics, comfort and safety, not
necessarily in that order, before finalizing a purchase. ―It‘s smarter to think about emotions and
attitudes, if marketers are to do a better job of marrying what a car offers to the consumer‘s image of
the offerings.

The mindset of the Indian consumer is such that he is delighted if he buys a pen a little cheaper than
his neighbor. Things are, however, slowly changing and customers at the upper end of the market are
now ready to pay more for more. I hope that this approach will soon enter the small car segment,
maybe not with the same intensity .

―Success will largely be determined to the extent a company can differentiate itself in terms of
intangibles that go with a carǁ. Thus, success could well hinge on the best of bundle of services that a
carmaker can provide. Maruti Suzuki grew from zero to the 500,000 mark and the number One sales
spot in India in just five years. Looking at the present scenario it can be said that though there is lot
of competition in the auto world Maruti Suzuki is picking up well.

59
 RECOMMENDATIONS

Key attribute components:

• Operational attributes.

• Globalization is yet another opportunity, if followed effectively & promptly.

• Brand Image.
• Customer Specific Details.
• An excellent service & support infrastructure.
• Ability to provide the cutting edge technology at best-value-for-money
• Strong customer relationships

• World Class Quality standards maintained for PPP (People, Processes &
Performance). Alliance with global technology leaders.

• The message should to the customers be sent in these components only to have the
maximum benefit from the advertisement.

• With the fast growing economy the pricing strategy needs to be tackled with care as
it can decide upon long term decisions of the company.

60
Interviews as per open ended format

8. Being a leading automobile business group could you please

elaborateon production systems vis-à-vis Vendor Management?
A lean manufacturing system is the order of the day. State-of-the-art systems to monitor and
ensure best of breed processes are the key within their business systems. Also important is
an efficient supply chain system fully supportive to the lean manufacturing system.

9. Where does Indian automobile industry stand on the global map of Auto mobile
industries in the world?
The Indian Auto Industry has just started getting a foothold on the global map. Presently the
business is around US$ 8.7 billion of which approximately $1 billion is the export market.
As per the latest McKinsey report, the auto component business has a potential to grow by
30% and touch US$ 35 to 40 billion by 2015 of which 20 to 25 billions US could be export
focused.

10. Do you have a dealer network? Do you sell directly or through dealers?
As regards their marketing strategy, it could be derived from their responses that they have
a large dealer network. A customer may also contact their branch office in his/her area to
get the names and addresses. They can also supply sections directly. For smaller lots, the
traders/ dealers may be contacted.

61
 BIBLIOGRAPHY

Books & Journals

• Marketing Management by Phillip Kotler

• Brand positioning by Subroto sengupta
• Positioning: The Battle for your mind by Al Ries & Jack Trout
• Ahluwalia, I.J. (1988). "Industrial Policy and Performance in India" in Lucas,
R.E.B. and
G.F. Papanek (eds.) (1988). The Indian Economy: Recent Development and
Future Prospects. Delhi: OxfordUniversity Press, pp. 151-162
• Ahluwalia, I.J. (1996). "India's Opening up to Trade and Investment" in I.J.
Ahluwalia, Rakesh Mohan and Omkar Goswami, Policy Reform in India.
Edited by Charles Oman. Paris: OECD, pp. 17-41
• AIAM (1999). Recommendations for Developing Indian Automotive
Policy. Association ofIndian Automobile Manufacturers, New Delhi

Newspapers, Journals & Magazines

• Business World
• The Economist
• Economic Times
• Autocar India‘s